Europe to invest €3.8 billion in the biobased economy

48 Companies join forces with the European Commission to set up a Public-Private Partnership and accelerate the deployment of biobased products in Europe

Today, the European Commission proposed a €3.8 billion Public Private Partnership (PPP) on Biobased Industries, in order to accelerate the commercialization of biobased products in Europe. The European Commission will invest €1 billion and industry €2.8 billion, from 2014 to 2020, to boost market uptake of new biobased products that are “made in Europe”.

The partnership promotes the use of various sources of sustainable biomass and waste to produce everyday products such as food, feed, chemicals and fuels. The use of local biomass and waste will generate growth and jobs in rural areas across European regions, while reducing the EU’s reliance on fossil fuels, thereby offering sustainable alternatives to oil-based products and enhancing energy and food security.Novozymes is part of this initiative alongside 47 leading European companies in the biotech, chemical, energy, agro-food and pulp and paper sectors.

"The Biobased Industries PPP is essential for Europe to remain competitive in the global race for the development of a biobased economy,” says Novozymes CEO Peder Holk Nielsen. “It is an opportunity for reindustrialization and for reversing the investment trend currently going to other regions of the world because of more attractive policy frameworks.”

The PPP will capitalize on Europe’s innovation and technological leadership to bring biobased solutions from research labs to the market. Various sectors will be brought together to optimize and create new value chains, such as connecting farmers and foresters directly to consumers.

The PPP is part of the European Commission’s Innovation Investment Package that was released today. The PPP is expected to start its activities in early 2014 following approval from EU Member States.